Salient to Investors: Viktor Shvets and Chetan Seth at Macquarie said: Emerging markets and economies are in a worse situation than in the 1997 Asian financial crisis because they now face far longer, more painful and insidious disease with limited or no cures or exits, punctuated by occasional significant flare-ups. The effect

Salient to Investors: Dani Rodrik at Harvard said: Emerging markets may be seen to be in deep trouble but do not deserve the doom-and-gloom treatment they are getting. Stronger economic headwinds ahead will make it easier to distinguish countries that have strengthened economic and political fundamentals from those that have relied

Salient to Investors: Fareed Zakaria said: Lee Kuan Yew said America will remain the world’s dominant power in the 21st century only if it is the dominant Pacific power. Global stability will be shaped by how the US handles China. Graham Allison at Harvard said that since 1500, war resulted

Salient to Investors: Jim O’Neill said: We are closer to a buying opportunity in emerging-market stocks than to joining in the panic. While some places in the emerging world have real problems, to herald an emerging-market crisis is ridiculous. Ukraine, Thailand, Argentina and Turkey have some serious issues. The Fed decision

Salient to Investors: Investors are abandoning emerging economies, good and bad, for the US. Morgan Stanley said Brazil, Indonesia, India, South Africa and Turkey are the Fragile Five – all with large deficits, slowing growth and vulnerable currencies. Argentina is generally credited with starting the general panic after playing fast and

Salient to Investors: Ellen Zentner at Morgan Stanley said: The Fed’s near-zero interest rate and QE is holding down US bond rates, meaning the US Treasury yield curve would struggle to invert, crimping its effectiveness as an indicator of business cycles. Yield curve inversion signals investors are betting on weaker

Salient to Investors: Nouriel Roubini at NYU said: There has been a global recovery in the last year with the US recovery and reduced tail risks of a eurozone breakup and a hard landing in China. The US economy recovery is very fragile, with barely 2% GDP growth expected in

Salient to Investors: Mohamed El-Erian at Pimco said: Weakening emerging-market growth and spiraling currencies risk creating headwinds for a recovering US economy. Longer-term, we should care due to the feedback loop to the US. We will see a tightening of financial conditions to markets, with growth more challenged and the ability of

Salient to Investors: Fed tapering, China’s credit squeeze, and Japan’s reflation ultimately prime the three biggest economies for less volatile and longer-lasting expansions, but near-term, emerging markets, commodity producers, and economies that need cheap cash or weaker currencies, including the euro area, could suffer. Stephen Jen at SLJ Macro Partners said that